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NEW DELHI: Major aircraft maintenance firm Air Works today sought slashing of import duty on airplane spares and service tax on MROs in the upcoming budget.

Expanding its portfolio, the company had announced the acquisition of French aircraft repainting company Aero Technique Espace (ATE) last month.

This is Air Works' second such acquisition since it bought off UK-based Air Livery almost two years ago, becoming "one of Europe's largest providers of aircraft paint services", its Managing Director Vivek N Gour told PTI here.

Air Works, which had acquired business aviation services company Empire Aviation last year, is also a one-stop shop providing a wide range of manpower and services - from pilots, cabin crew and maintenance to getting flight permissions, landing rights and refuelling aircraft finance and insurance to customers in India and the Gulf.

"If an aircraft owner wants to fly out urgently, he or she has to give us only a three-hour notice to put everything in place," Gour said.

Regarding the latest acquisition of ATE, he said all major European carriers, like Virgin Atlantic, Lufthansa, Air France and EasyJet, and those from North Africa were Air Works' clients now. "We have become a known name there."

Observing that ATE also paints 'green aircraft' (new ones) for manufacturers like Airbus and ATR at their facilities in southern France, he said, "We hope to further develop these relationships and increase our service footprint with both original equipment manufacturers."

Asked what revenue did his company earn from European operations, he said almost 55 per cent of the revenue, the total expected to be over Rs 400 crore this year, came from abroad "because the MRO (Maintenance, Repairs and Overhaul) industry here is in shackles".

Asked about the MRO business in India, Gour said the "single biggest" burden on the industry was the 19 per cent import duty on spares, apart from a 12 per cent service tax.

"Government should create a level-playing field for MROs, encourage the budding industry and provide incentives so that Indian airlines are not forced to send their aircraft abroad for checks, repairs and maintenance," he said, claiming that the government earns "a meagre sum of only about Rs one crore through this tax".

Airlines like IndiGo and SpiceJet now fly their aircraft to Singapore and even Colombo for repairs and maintenance.

Maintaining that MRO industry had a "huge potential" in India, he said lack of support would not only hamper its growth, including that of Air India's newly-formed MRO, but would also hold back an enormous employment potential.

He said MROs here could cater to planes from South and Southeast Asia, besides those from Central Asia.

Air Works was India's only EASA (European Aviation Safety Agency)-certified MRO with approvals for ATR 42/72 aircraft, Airbus A-320s and Boeing 737s. It is also an authorised service centre for aircraft majors like AgustaWestland, Bell, Bombardier, Dassault Falcon, Embraer, Gulfstream, Hawker Beechcraft, Honeywell and Rockwell Collins.